Hyundai Mobis wins $9.2 bn orders in Europe, North America in 2023

[Courtesy of Hyundai Mobis]

Hyundai Mobis Co., an automotive parts manufacturer under South Korea’s Hyundai Motor Group, is expanding its presence in the global electric vehicle (EV) industry by offering cost-efficient solutions to EV manufacturers.

Hyundai Mobis said on Monday that it won orders worth $9.22 billion from overseas automakers in Europe and North America last year. The amount only includes orders received from companies other than its affiliates Hyundai Motor Co. and Kia Corp.

The overseas order value for Hyundai Mobis soared to a record high, doubling from the previous year, marking a significant accomplishment within just one year.

The growth rate in overseas orders for Hyundai Mobis has been consistently steep, rising by 39 percent in 2021, 85 percent in 2022, and further accelerating to 98 percent in 2023. Compared to 2020, overseas order values have increased by over five times.

A major contributor to Hyundai Mobis’ success in overseas orders is the demand for its battery system assembly (BSA), a key EV component.

Last year, Hyundai Mobis secured a substantial order for BSA from German automaker Volkswagen. BSA integrates battery packs and battery management systems, ensuring the safe and efficient operation of EV batteries.

Efficiency in BSA directly impacts the EV performance, including driving range. Hyundai Mobis’ BSA is scheduled to be integrated into Volkswagen’s new EVs on an exclusive platform. To meet the demand, Hyundai Mobis plans to establish a new production hub for BSA near Volkswagen’s facility in Spain, ensuring a stable supply of components.

In 2022, Hyundai Mobis had already secured orders for the European market, providing the chassis module for the next-generation EVs of Mercedes-Benz.

The influx of orders for Hyundai Mobis from European automakers for EV components can be attributed to the growing competition among automakers to reduce the cost of manufacturing EVs.

Chinese automakers such as BYD, leveraging lower prices, are expanding their influence in the global EV market.

Meanwhile, Tesla, prioritizing market share expansion over profitability, is intensifying price competition. Major automakers like Volkswagen are outsourcing critical EV components like BSA to specialized suppliers to cut manufacturing costs.

Hyundai Mobis’ technological prowess is identified as another key factor in its success. As Hyundai Motor Group swiftly transitions to EVs compared to its competitors, Hyundai Mobis has enhanced its technological capabilities by supplying related components.